Sweden’s Tele2 has completed the sale of its Russian operations to state-controlled lender VTB Group.
The telco announced the successful completion of the US$3.55bn deal this afternoon, comprised of US$2.4bn in equity value and US$1.15bn in net debt….
Sweden’s Tele2 has completed the sale of its Russian operations to state-controlled lender VTB Group.
The telco announced the successful completion of the US$3.55bn deal this afternoon, comprised of US$2.4bn in equity value and US$1.15bn in net debt. This represents an EBITDA multiple of 4.9x based on FY 2012 results.
Tele2 chairman Mike Parton described the sale of Tele2 Russia, which received the approval of Russian antitrust regulator FAS yesterday, as “an excellent result for Tele2 shareholders”.
“Our cash investment in this business was SEK6bn (US$915.3m) and this has generated a cash return of over SEK27bn (US$4.12bn) including the transaction, much of which has been returned to our shareholders.”
Rival suitors for Tele2 Russia – Alfa Group’s A1 and MTS and VimpelCom in partnership – would strongly disagree with Parton’s comments. The three companies have all said Tele2’s deal with VTB does not represent the best value for shareholders and presented higher counter-offers.
However, Tele2 has remained stalwart in its commitment to the VTB deal, first announced on 27 March. The following day, Al and then MTS and VimpelCom presented counter offers of up to US$4bn in cash and up to US$4.25bn respectively, including debt.
A1 managing director Dmitry Vozianov was quoted by Reuters earlier this week as saying the firm’s lawyers are considering filing a legal claim in connection with the matter. Vozianov also said the firm was in talks with Tele2 minority shareholders, noting that they could make a legal claim for incurred losses.
